With the second month of the year rounded up, the Nigerian stock market recorded a total of N3.246 trillion capital appreciation on investors’ investment in the first two months of the year, 2022.
Analysts attributed the development to the impressive earnings by major bellwethers and positive corporate actions. Also, market participants found significant value in small-cap stocks, some of which outperformed the market with significantly outsized gains.
Reviewing stock market activities in January and February, the basic indicators of the Nigerian Stock Exchange (NSE), All-Share Index gained 10.95 per cent to close on February 28, 2022 at 47,394.53 basis points, from 42,716.44 points at which it opened for the year. Market capitalisation rose by N3.246 trillion to close on February 28, 2022 at N25.543 trillion from N22.297 trillion at which it opened for the year.
Performance across sectors was bullish as at February 25, 2022. The NGX’s Oil & Gas index recorded the highest gain during the month, with a gain of 23.26 per cent. The Banking index up by 11.07 per cent, while NSE Industrial Goods appreciated by 6.12 per cent. Others are NGX Pension, NGX Premium, NGX 30 and NGX Lotus II indices recorded a year-to-date gain as at February 25, 2022 of 6.02 per cent, 5.89 per cent, 5.51 per cent and 1.12 per cent. On the other side, NGX Insurance declined by 4.51 per cent, while NGX Consumer Goods down by 0.51 per cent in the first two months of the year, 2022.
Speaking on market performance, the managing director/CEO of Trust Yields Securities Limited, Mr. Rasheed Yussuff said the stock market performance in the last two months is reflective of the nation’s economy.
According to him, the domestic economy this year has been doing reasonably well, coupled with the steady increase in global oil prices. All these positive indicators have been reflected in our stock market in the last two months. Things are looking less chaotic as everybody was anticipating this year and it is that optimism that is pushing the stock market high.
“We have also seen impressive corporate earnings by listed companies. These companies such as Zenith Bank, Seplat Energy, among others are paying robust dividend to shareholders. It will be against the background of these developments if the stock market did not appreciate impressive earnings and economic growth.
“The instability curtailed and agriculture produce has increased. I am not saying everything is rosy but we have seen improvement […]
